Authored by Dan Flynn and Joe Yasinski of Gold Bullion International,
Part 2 of 3: “Paper Gold, what is it really good for?”
In our first installment of this series we explored the concept of stock to flow in the gold markets being the key driver of supply/demand dynamics, and ultimately its price. To briefly summarize the STF concept, the “stock” of existing gold is the total amount ever mined and the “flow” is the amount of physical gold available for purchase on any given day. Obviously the more flow, the more for sale and presumably, the lower the price.